(a) Before First Hearing Session Begins
After the Director sends the list(s) generated by the list selection algorithm to the parties, but before the first hearing session begins, the Director may remove an arbitrator for conflict of interest or bias, either upon request of a party or on the Director's own initiative.
(1) The Director will grant a party's request to remove an arbitrator if it is reasonable to infer, based on information known at the time of the request, that the arbitrator is biased, lacks impartiality, or has a direct or indirect interest in the outcome of the arbitration. The interest or bias must be definite and capable of reasonable demonstration, rather than remote or speculative. Close questions regarding challenges to an arbitrator by a customer under this rule will be resolved in favor of the customer.
(2) The Director must first notify the parties before removing an arbitrator on the Director's own initiative. The Director may not remove the arbitrator if the parties agree in writing to retain the arbitrator within five days of receiving notice of the Director's intent to remove the arbitrator.
(b) After First Hearing Session Begins
After the first hearing session begins, the Director may remove an arbitrator based only on information required to be disclosed under [Rule 12405] that was not previously known by the parties. The Director may exercise this authority upon request of a party or on the Director's own initiative. Only the Director may exercise the authority under this paragraph (b).
(c) Written Explanations
The Director shall provide to the parties a written explanation of the Director’s decision to grant or deny a party’s request to remove an arbitrator pursuant to paragraph (a) or (b) of this Rule.
(d) By Agreement of the Parties
(1) Except as provided in paragraph (d)(2) of this Rule, at any stage of the arbitration proceeding, the Director may remove an arbitrator if all of the named parties agree in writing to the arbitrator’s removal.
(2) The parties may not agree to remove an arbitrator who is considering a request to expunge customer dispute information pursuant to Rule 12800 or 12805, as applicable, except that a party shall be permitted to challenge any arbitrator selected for cause pursuant to paragraph (a)(1) or (b) of this Rule.
(e) Confidentiality of Requests to Remove Arbitrators
(1) A party may not inform the arbitrator or panel of another party’s request to remove an arbitrator under paragraphs (a) or (b) of this rule.
(2) If a party discloses to the arbitrator or panel an opposing party’s request to remove an arbitrator under paragraphs (a) or (b) of this rule, the party that requested removal of the arbitrator may file with the Director within five days of being made aware of the disclosure a written motion for removal of the arbitrator in accordance with Rule 12503. If the requesting party does not file a motion for removal of the arbitrator within five days of being made aware of the disclosure, then the requesting party shall forfeit the opportunity to request removal of the arbitrator because of the disclosure. Absent extraordinary circumstances, the Director shall grant the motion if the party that made the request to remove the arbitrator timely files the motion.
